What to do with 100K
Discussion
In a bit of a dilema, having almost sold my house, i'm starting to wonder about what to do with the money, ( I don't need to buy another house to live in ).
Options are, buy a property and rent it out, or invest the money, we are talking about £110K.
Have been to look at a new build 2 bed apartment, built to a very high spec, and renting for between 550-575 a month.
The housing market at the moment is still favouring buyers, but is it that good an investment, or are there other means of getting a decent return on 110K.
Thanx.
Options are, buy a property and rent it out, or invest the money, we are talking about £110K.
Have been to look at a new build 2 bed apartment, built to a very high spec, and renting for between 550-575 a month.
The housing market at the moment is still favouring buyers, but is it that good an investment, or are there other means of getting a decent return on 110K.
Thanx.
110k isn`t enough to change someones life, unless you have a burning desire to race at Le Mans, climb Everest, sail the world etc or have a burning desire to work for yourself and invest in a business venture, buy a Porsche 993 ca.25K, put 75k into a high risk pension fund and get 20/40 % tax relief, keep the remaining 10K in ISA`s
Loads of other things you can do, wouldn`t put it in buy to let though, that train`s left the station
Could put it all on red / black but then the same question, what to do with £220k ?
Loads of other things you can do, wouldn`t put it in buy to let though, that train`s left the station
Could put it all on red / black but then the same question, what to do with £220k ?
If he wants to forget about it for 10 years + I would say (now please note I have no experience but thinking about doing a similar thing)put the 100k down as deposit for maybe 3 flats, buy one get it rented then move on to the next etc...
As long as the rent covers the mortgage and for some void - in 10 years time the price of the properties would have gone up.
Sell.
As long as the rent covers the mortgage and for some void - in 10 years time the price of the properties would have gone up.
Sell.
Thanx for all the info so far.
I suppose it depends on the property market as to whether buying to rent is a good investment, could it actually get any worse?
I really just need a decent return whilst protecting the capital.
After thinking about it, and taking on board what has been said, I will leave the property I was looking at alone, just doesn't add up after you take all the monies out, not really left with that much per month.
I suppose it depends on the property market as to whether buying to rent is a good investment, could it actually get any worse?
I really just need a decent return whilst protecting the capital.
After thinking about it, and taking on board what has been said, I will leave the property I was looking at alone, just doesn't add up after you take all the monies out, not really left with that much per month.
steve1 said:
Thanx for all the info so far.
I suppose it depends on the property market as to whether buying to rent is a good investment, could it actually get any worse?
I really just need a decent return whilst protecting the capital.
After thinking about it, and taking on board what has been said, I will leave the property I was looking at alone, just doesn't add up after you take all the monies out, not really left with that much per month.
Anything can get worse, even cash (just look at Icesave!). I suppose it depends on the property market as to whether buying to rent is a good investment, could it actually get any worse?
I really just need a decent return whilst protecting the capital.
After thinking about it, and taking on board what has been said, I will leave the property I was looking at alone, just doesn't add up after you take all the monies out, not really left with that much per month.
However, over the long term I think property should be pretty safe. You just have to be patient and buy the right place.
You could put your 100K down as a 40% deposit and borrow 150k on a BTL mortage to get something up to 250k. If you can find a house with a 10% yield or more (i.e. a rental return of 25k per annun, 2100 a month or 500 a week) then I would suggest that you have found a bargain and would be a great bet.
Flats have service charges that are outside your control and are best avoided.
quyen said:
steve1 said:
Thanx for all the info so far.
I suppose it depends on the property market as to whether buying to rent is a good investment, could it actually get any worse?
I really just need a decent return whilst protecting the capital.
After thinking about it, and taking on board what has been said, I will leave the property I was looking at alone, just doesn't add up after you take all the monies out, not really left with that much per month.
Anything can get worse, even cash (just look at Icesave!). I suppose it depends on the property market as to whether buying to rent is a good investment, could it actually get any worse?
I really just need a decent return whilst protecting the capital.
After thinking about it, and taking on board what has been said, I will leave the property I was looking at alone, just doesn't add up after you take all the monies out, not really left with that much per month.
However, over the long term I think property should be pretty safe. You just have to be patient and buy the right place.
You could put your 100K down as a 40% deposit and borrow 150k on a BTL mortage to get something up to 250k. If you can find a house with a 10% yield or more (i.e. a rental return of 25k per annun, 2100 a month or 500 a week) then I would suggest that you have found a bargain and would be a great bet.
Flats have service charges that are outside your control and are best avoided.
My money would be Exchange rates.
E.g
http://www.iktisatbank.com/SPhERE/cPortal/iktisat/...
Bank approx. 15% interest with residency in TRNC.
£100,000 in at 2.6 = 260,000TL
wait for a few months until exchange rate goes down which it will as the holiday season will be over.
260,000TL sell at 2.4 = 108k
3 months interest at an anual rate of 15% is abuot 5k
£13k in three months.
Obviously this is an ideal world but you can see that the exchange rate doesn't need to chagne much when there are 6 figures involved.
E.g
http://www.iktisatbank.com/SPhERE/cPortal/iktisat/...
Bank approx. 15% interest with residency in TRNC.
£100,000 in at 2.6 = 260,000TL
wait for a few months until exchange rate goes down which it will as the holiday season will be over.
260,000TL sell at 2.4 = 108k
3 months interest at an anual rate of 15% is abuot 5k
£13k in three months.
Obviously this is an ideal world but you can see that the exchange rate doesn't need to chagne much when there are 6 figures involved.
sam.r said:
NoelWatson said:
sam.r said:
in 10 years time the price of the properties would have gone up.
Can you guarantee this statement?Edited by NoelWatson on Sunday 26th July 17:46
Do you think houses will be worth less in 2019 than now?
NoelWatson said:
sam.r said:
NoelWatson said:
sam.r said:
in 10 years time the price of the properties would have gone up.
Can you guarantee this statement?Edited by NoelWatson on Sunday 26th July 17:46
Do you think houses will be worth less in 2019 than now?
Dave_ST220 said:
NoelWatson said:
sam.r said:
NoelWatson said:
sam.r said:
in 10 years time the price of the properties would have gone up.
Can you guarantee this statement?Edited by NoelWatson on Sunday 26th July 17:46
Do you think houses will be worth less in 2019 than now?
Dave_ST220 said:
Again you haven't answered what is a pretty simple question. Please do.
I've no idea, nor does anyone else. But I believe in reversion to mean. So at some point this will correct. As I said, maybe with higher wages, maybe not. My 50:50 comment came from when I last checked what price I could hedge myself at on the 10Y future market - it is currently showing 7% rise between now and then, so a reasonable pickup.Gassing Station | Finance | Top of Page | What's New | My Stuff